The emergence of South Africa as an outsourcing destination has seen a transformation in the type of jobs being sent there.
The outsourcing market is on the move. Advances in technology and shifts in working patterns mean people are regularly collaborating across locations and borders. Today it’s not uncommon for companies to comprise multidisciplinary teams of people in several different companies working together as easily as if they were in the same room. Outsourcing is moving from a value-led proposition in which the main aim is to cut down on costs, to a chance to broaden the talent pool.
How the outsourcing market is changing
The last few years have seen a dramatic increase in the business process outsourcing market in South Africa. While traditional outsourcing destinations such as India still lead the way South Africa has seen its market share blossom.
According to the GSP Job Creation Report, it has grown more than 40% in the last ten years. Companies from all over the world are looking to South Africa whether looking to shift from another outsourcing location or to move domestic staff overseas.
South Africa is now the third most popular outsourcing destination in the UK and is the fastest-growing destination in the US.
What’s interesting, though, is the type of jobs that are being outsourced. Traditionally BPO has been associated with call centre-based roles, such as customer service. Now, though, companies are looking to outsource a much wider range of roles including those that would normally require a high level of dynamic collaboration with domestically based teams, including marketing.
Outsourcing marketing
Until recently, the thought of outsourcing anything but the most basic marketing roles might have been considered fanciful. Marketing professionals are highly qualified. They need to enjoy a level of close interaction with domestic teams and will normally require a reasonable level of knowledge about the markets they operate in.
Some attempts to outsource marketing roles such as copywriting or telesales met with mixed success. Poor levels of written and spoken English produced low cost, but low-quality results.
However, in South Africa, companies have found an alternative destination with everything they need.
Cost of labor
First and foremost, the original motivation behind outsourcing still holds. The cost of labor might not be as low as in India or the Philippines, but it is still much lower than in countries such as the US, the UK, or mainland Europe.
Indeed, according to some calculations, once you factor in government incentives South Africa can even rival any other country based on cost alone.
The South African government is keen to kickstart growth in the country and sees outsourcing as an ideal opportunity do to just that. The business process outsourcing industry has attracted thousands of jobs into the market with almost 20,000 being generated in 2023 alone.
Any company promising to employ beyond a certain number of domestic employees can benefit from lucrative government incentives, making South African employees incredibly price competitive.
A highly skilled workforce
Low cost does not come at the expense of quality. South Africa has a diverse and highly qualified workforce. Education levels are high and you can find a rich supply of highly qualified professionals at all levels.
Outsourcing, therefore, becomes much more than just a way to save money. It’s an opportunity to broaden the talent pool and attract people with skills and expertise that might previously have been out of reach.
Doing this is easier than ever thanks to the rise of online technology and video conferencing. Platforms such as Zoom or Microsoft Teams now make it possible to make high-quality video calls free of charge anywhere in the world. South Africa has invested considerably in its internet infrastructure over the past few years. Ultra high-speed broadband is freely available and is almost completely digital.
Professionals with access to high-speed broadband can now communicate with colleagues in the UK with just a few clicks of the mouse. Instant messaging also makes it easy to share files or ask questions.
Location, therefore, no longer matters as much as it used to, and for that, we can thank – at least in part – COVID-19. While the technology to power remote work collaboration has long existed, the spread of COVID-19 and the lockdowns that came with it transformed working culture and attitudes.
Within a short space of time, remote working became the norm. People were accustomed to collaborating with large-scale multiple teams in many different locations. For a company in London, therefore, communicating via Teams with someone in Cape Town becomes as easy as someone in Birmingham.
The benefits for companies can be enormous. No longer are they restricted to their immediate surroundings when looking for talent. Now they can cast their net across the entire world.
Time zones and culture
Faster communication, therefore, encouraged companies to rethink not only their approach to working practices but the way they viewed outsourcing as a whole. In this new era, South Africa had everything they needed. Not only did it have a highly qualified and affordable population, but the time zones were a good match for Europe and the culture felt comfortable and familiar. With only a few hours difference, South African employees can be easily available during working hours.
Most importantly of all, though, South Africa represents a good match linguistically and culturally. As with the West, it benefits from a youthful multicultural workforce with a good command of English. Language barriers are unlikely to be a barrier whether in communications between team members or in client-facing roles.
Most people speak English with a clear, neutral accent making it easier for customers to engage. Fewer communication barriers also mean less of a reaction against outsourcing that had seen many major companies decide against locating customer-facing operations overseas.
Gateway to Africa
South Africa, therefore, offers a rich array of benefits for Western companies. The costs are low but the quality is high. The culture is familiar and the talent pool is deep. A receptive regulatory environment, meanwhile, further adds to the cost/benefits calculation.
However, there is one further benefit that is especially relevant to marketing. South Africa offers a rich and diverse market that is full of opportunity and can serve as a gateway to multiple markets across the continent.
For companies looking to spread their wings and expand into new markets, South Africa represents an outstanding port of call. Its familiar culture makes for a warm reception to international products and services while a rich local talent pool is full of people with the skills and expertise to help your product thrive.
When making the move into a new country, businesses often struggle to understand the nuances and challenges of each new destination. In South Africa, you can benefit from a rich resource of highly qualified local marketing professionals who combine professional skills with local insights. This blend of expertise and experience can be critical in helping you to adapt and refine your marketing strategy to suit South Africa.
Once successful in South Africa, the stage is set to enjoy further success across the continent.
South Africa, therefore, has benefited from a confluence of factors that have combined to make it an extremely attractive outsourcing destination. The workforce is talented and diverse, the market is rich and lucrative; the time zones match and the cost of doing business is low. In a world in which companies of all kinds are operating on increasingly fine margins, South Africa is transforming the scope, scale, and nature of outsourcing.
